Here are Miami Housing Myths Misleading Renters, Buyers

For those of us looking to call South Florida home, we will often hear that Miami’s housing market described as unpredictable, overpriced, or even on the verge of collapse.

Luckily, many of these fear mongering headlines and social media clips are highly sensationalized. And below, we’re going to crack open some of the most common Miami housing myths affecting buyers today, as well as the truth for these South Florida neighborhoods backed by data.

Myth #1: We’re in a Housing Bubble, Miami’s Market is Going to Crash

This is the No.1. I hear a lot and it’s arguable the most common belief about the Miami housing market. The myth: Miami (and even other parts of the country) are in a housing bubble similar to 2008 and that prices are about to crash – bad.

The truth: the market has indeed cooled from its peak prices during the housing market we experienced in COVID. Allapattah, for example, was down 7.9% from last year, after years of upwards trending growth.

But doesn't that mean the market is crashing? No, not quite.

In the 2008 market crash, widespread foreclosures due to risky lending practices is the culprit that got many homeowners in hot water. People were obtaining mortgages, even when they couldn’t afford them, which ultimately led to a massive loss of homes at jaw dropping rates.

But today, there now exists significantly stricter regulations that prevent lenders from just handing out mortgages like samples at a food court. And this key difference that’s what makes this market an entirely different ball game.

Between the tighter regulations and the rate of the price decreases we see today, (from listing prices that were unsustainable long-term in the first place) many real estate experts consider Miami's current market to be a typical market correction, not a market crash.

In fact, Miami continues to experience population growth and strong demand fueled by migration.

Myth #2: Condo Prices are Dropping! Now Is a Great Time to Buy a Condo.

As an active real estate agent, I was previously a fan of condos to a degree. They are often marketed as the easiest entry point into homeownership, especially for first-time buyers. Now, that’s still true to some extent, however, in Miami, the condo ownership lane has gotten significantly more complex.

While recent data does show that Florida condo prices have declined modestly year over year, with median prices down about 8% in 2025, expensive factors like rising HOA fees, rising insurance costs, and a slew of special assessments have made monthly ownership expenses less predictable.

But, why is this happening?

Following the heartbreaking tragedy in Surfside, Florida passed several new safety and reserve requirements. And as a result, many older condo buildings have seen sharp increases in dues, while some buyers struggle to secure financing due to tighter lending standards.

As a result, the idea that condos are always the safest or most affordable option is misleading without at least closely reviewing all the condominium's finances.

Myth #3: You Need to Be Rich to Buy a Home in Miami

Fact: at the time of this article prices in Miami are cooling down, not heating up. This means that now is a good time as any to consider homeownership.

Areas like Little Haiti, Little River, Allapattah and North Miami are experiencing a revitalization that can bring new life into each of these areas.

Between cooling prices, stabilizing interest rates, and being able to put down just 3.5% of the purchase price for your next home, most of us do not need to be part of the upper 1% to own a home in South Florida. 

For far less than the 20% everyone assumes is mandatory for a property purchase, homeownership is still doable. Especially for buyers considering townhomes and starter single family homes.

What aspiring homebuyers need to remember is that when the time comes for you to buy, lenders will look at your overall financial health, not just the down payment you have available. That includes all of your financial history, including your current debt and payment track record, not just your current savings. 

Jessica Gervais is a Miami REALTOR® and creator of the W.I.N., a real estate and credit community for people taking their first steps into financial freedom.